A cannabis retailer has leased space on Canada’s most prestigious street-front retail strip, Bloor Street West in Toronto, and another is set to open nearby in Yorkville. Neither is open yet and it’s not yet clear how they will operate, given that only 25 cannabis licenses will be granted by the Ontario government in April of this year.

In many respects, cannabis retail in Yorkville makes sense. The affluent high-density area is growing quickly, including a mix of new younger residents as well as seniors downsizing from larger homes in areas such as Rosedale and Forest Hill. Cannabis use is proving to be more common than many expected, and an informal poll amongst residents in the neighbourhood last week indicated that some will be shopping locally, be it for recreation or for medicinal uses.

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Photo: Fire & Flower Facebook

Photo: Fire & Flower Facebook

Photo: Fire & Flower Facebook

Photo: Fire & Flower Facebook

Photo: Fire & Flower Facebook

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Photo: Fire & Flower Facebook

Photo: Fire & Flower Facebook

The Ontario government announced last month that only 25 legal cannabis dispensaries would be opening in Ontario in April via a lottery system, with lack of supply being the main reason for the limited rollout. More licenses will be granted as the cannabis supply chain sorts itself out — pot has been selling out in retailers nationally after legalization in October of 2018. There’s no word yet if either Yorkville retailer will be able to distribute cannabis products in April, though some brands are also securing spaces for educational purposes.

Many landlords we’ve recently spoken with have said that lately, cannabis-related retailers have been the most aggressive in bidding for street-front locations in cities such as Toronto. That’s good news at a time when in some areas, leasing space has proven to be a challenge as some retailers re-evaluate their brick-and-mortar strategy in Canada. Some streets have seen a downward trend in foot traffic — and if Ste-Catherine Street in Montreal is any indication, cannabis retailers could help add foot traffic to neighbourhoods as consumers line up to make purchases. Hopefully the same shoppers will have enough money left over for Louis Vuitton, Prada and Dior, the latter of which will open its largest store in North America at 131 Bloor Street West later this year.

Craig Patterson, now based in Toronto, is the founder and Editor-in-Chief Retail Insider. He's also a retail and real estate consultant, retail tour guide and public speaker.

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